The municipal bond landscape remains positive due to lower-than-expected issuance and surging demand from high net worth investors, said Robert DiMella, portfolio manager for the MainStay Tax-Free Bond Fund. DiMella said local general obligation bonds will be strong performers in the second half as credit profiles of local governments throughout the country continue to improve. DiMella also said he has made a profit on his Puerto Rico holdings. Finally, DiMella said prices will improve because market liquidity continues to diminish as broker/dealers reduce their capital commitments.
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